Zerodha founder Nithin Kamath on September 1 announced that they have received in-principle approval for their asset management company (AMC) mutual fund (MF) license.
The firm had applied for a mutual fund license in February 2021.
So, we just got our in-principle approval for our AMC (MF) license. I guess now comes the hard part. https://t.co/g35YH60ksC
— Nithin Kamath (@Nithin0dha) September 1, 2021
With this, India’s largest discount broker will now be able start its asset management company (AMC) in under a year’s time.
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Zerodha has for long focused on bringing transaction costs down in its discount brokerage business. The firm had so planned to launch low-cost funds. “Passive, simple, cheap index-traded funds will be on offer,” says Nithin Kamath, founder and CEO of Zerodha.
“Mutual fund products need to be simplified to attract investments from young investors,” says Kamath. Zerodha started its journey in 2010 as a ‘Rs 20 per order broker’ and gained popularity as a no-frills, low-cost player among traders, especially high-volume derivatives traders.
Zerodha handles four million trades a day on the exchanges. Retail investors also found it attractive to invest in the direct option of mutual fund schemes using the ‘Coin’ platform launched by Zerodha. Coin today has assets under management (AUM) of Rs 5500 crore.